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tv   Mad Money  CNBC  October 13, 2009 6:00pm-7:00pm EDT

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someday, the driver will get to choose how efficient or powerful their car will be. the first ever hs hybrid. only from lexus. the most fuel-efficient of all luxury vehicles. i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere, and i promise -- >> "mad money." you can't afford to miss it.
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hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. no interest whatsoever. any job is not just to educate but to entertain you. so call me at 1-800-743-cnbc. everyone's focused on earnings, and i salute that. i think it's terrific. ♪ hallelujah hey, when they're great, they can sure move stocks. >> don't buy. don't buy. >> uh-uh. >> buy buy buy! >> as we're finding out tonight from two long-time cramer faves. intel and csx. that's right. the chip company and the rail company. bet you can't eat just one. cramericans love the short-term gains stocks like intel and csx give us. they give them to us in the wake of these unbelievable numbers after the close of the market. hey, but on this show we're not just about quick change profits. we're about winning big, too. with huge themes that can give you multiple ways to win. earnings.
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takeovers. multiple-year demand. and great growth stories. ♪ hallelujah that don't need to be spurred by washington. or by china. or anything else other than sheer raw change. >> all aboard. >> getting back to even, today, first day, first day. the best way to get back to even again and again is to return to the colossal themes. and that's why we constantly surf the mobile internet tsunami. because everybody's surfing it now. we had tsunami news that's every bit as good, a lot better than the intel numbers. we had a takeover at the heart of the mobile internet storm. and amazingly, not only did the target company, which we have endlessly recommended on the show, soar, but the acquirer did too.
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you've never seen that happen. we saw it today with cisco, which astoundingly rallied on the news. it said it's acquiring starent networks at a 20% premium today. you own that starent you're feeling darn good. better than if you own intel. usually when we have a takeover the stock of the buyer gets hit. but that didn't happen because cisco's going surfing now. it's surfing the mobile internet tsunami. let's go surfing now. everybody's learning how. and i'm going to teach you how to catch the waves of the mobile internet tsunami. in the vernacular of those stock-picking geniuses, the beach boys. i recommended starent as a tech spec and mobile internet play on may 8th. all right. get this. it's up 80% since we recommended it may 8th. hey, because it's the premium way to surf the tsunami. analysts and investors still aren't putting the pieces together. i'm not kidding. they're not putting the pieces together with the smartphone revolution. but cisco gets it. the release from its acquisition of starent this morning says it
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all. the mobile internet is at an inflection point as internet protocol enabled -- that's like machines, cisco machines, enabled smartphones and other connected mobile devices gain rapid acceptance. service provider cisco continues and the release has been actively investing in this market as global mobile data traffic is expected to more than double every year through 2013. cisco understands this revolutionary theme. like buzz -- cisco says the revolution. and it wants to change in a communications world. how come nobody else seems to understand this? let me ask you something. there's one of the two lenins. do we have to carry a picture of chairman mao? making a smartphone call before they get the point. and you know what? i think cisco's being very conservative with these expectations. i think the ramp will be much bigger than that. and more important i think this whole trend has been completely sxuterly lost on people just
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like the web was in 1995, just like the pc in 1989. then as now the street was fractured and didn't view the moves as part of a whole. in the 1990s didn't understand the revolution in substrates and styluses that made the memory and expanded the value of a pc to the size of a computer. they didn't understand the processing power of an intel 286 chip. they didn't understand moore's law from the great gordon moore then chairman of intel that made the forthcominging processor so powerful and so small. they didn't understand the spreadsheet revolution or the progress toward windows. they didn't see the whole world of -- the whole world of hardware was about to be upended. then in the mid '90s the web was perceived az way to get e-mail. its replacement power, its tsunami value. nobody even understand what search was. they didn't get speed. we didn't have a vision for what could happen. we thought it would be forever on dial-up, and we would stare at hourglasses for the rest of our lives.
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now at least some of us can see the revolution coming. like those of us who own starent this morning. apple is just 3% of the cell phone market. the question is not when it gets to 6%. it's how quickly can you get to 30%? can blackberry stop it? can palm stop it? if you're a carrier, you need starent, the company cisco just bought, to help handle the traffic and scale. because you simply can't do it yourself for the smartphones that are out there. when the web took off, cisco was duking it out with nortel and lucent to give carriers the infrastructure they needed for the revolution. there was a vast land grab, an actual war to handle all the infrastructure. this time on the mobile internet it looks like cisco's locking the carrier business up itself thanks to the starent acquisition. juniper networks is this cycle's version of nortel and lucent. it needs to play catch-up. it needs to play catch-up to -- what did you guys do with my ketchup? all right. it needs to play catch-up to cisco, only it probably can't. because its stock is a member of the walking dead if not the
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grateful dead or at least the walking wounded. especially considering how much juniper's already run. juniper goofed on the mobile internet. they can still play catch-up, but like so many of the analysts the company just didn't see it coming the way cisco did and now with the starent deal it could be locked out of the huge mobile infrastructure gains unless it makes a starent-like acquisition. so what could be the next starent? what could it be? well, let's come up with two of them. i like tekelec and ciena. two more telco equipment suppliers that haven't really moved yet, that are both natural acquisitions for juniper because they have some of the best assets out there for the mobile internet. tekelec has the technology behind streamlined text messaging. ciena helps wireless networks on bigger band wths, supports the video and data services that make the mobile internet possible. these are two of the most unloved stocks out there. a couple of surfing cinderellas if you ask me. as if the analysts simply don't understand the trend they're plugged into. but they're cheap, vablg, and could be taken over. and yet somehow the street likes juniper more than any of them?
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i say get in before the getting's still good before juniper goes surfing tsunami too. more important, the revolution is on, it is happening fast, and the analysts who are upgrading and raising apple's numbers are simply not looking at it -- even intel tonight talked about the mobile internet tsunami. they're only seeing one piece of a puzzle, these analysts, but these companies, 3g, 4g, cloud computing, apple iphone apps that are exploding. and we're still early, early with the equivalent of the search engine. like ink to me of old, the disk drives, seagate, connor, to really date myself. the street sees the moves in google, apple, research in motion, sees the moves in palm, in adc, of course now in starent, sees it in cisco and ciena and tellabs and tekelec and com scope and broadcom, net logic, exile inks, r micro. cyprus semi, tessera tech, sandi sandisk. these are the components of my mobile internet index. they think these stocks are disparate, they have nothing to
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do with each other. they're not connecting the dots. what i see is a tsunami that's carrying all of these stocks higher with the mobile internet index up 11.5% since i created it just august 11th. s&p up much less, 8% same period. here's the bottom line. the analysts and prognosticators didn't see the pc coming. they didn't see the web coming. they didn't see it this time either. nor did companies like juniper. i thought i had a bottle of ketchup out here. i guess i don't. oh, yeah. which has to play catch-up by buying ciena or tekelec. but some of us can see it. those of us who pointed out starent before the 80% move, those people are cashing in. you should too. don't wait on the sidelines looking at each piece separately when all these different moves in tech are part of a larger whole. take a look at cisco, tekelec, ciena, own a piece of the surfing revolution, and think about it. how can you not like a revolutionary tsunami surfing theme that both the beach boys and the beatles could get behind?
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how about peter in north carolina, please? peter. >> caller: hey, cramer. >> hey. >> caller: i've noticed the baidu -- does it seem likely to you and how do you feel about baidu versus goog? >> in the end i'm going to come down to a geographical issue. baidu is located in china, and therefore at any given time could be hostage to the quotations from chairman mao, whereas google could only be hostage to the u.s. justice department, which i'm not that worried about. i like google. i've been using a $600 price target long before the other guys, i almost called them clowns, but i am in the vein of thomas jefferson if not dalai lama. i think the stock can go up 80 points. i feel much better about google than baidu. take baid off your screen and put in goog. >> caller: a chilly rocktober boo-yah to you. >> how about that, 4-2 and then you're one and done. i love the rockies.
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there it is. >> caller: yeah, there it is. it didn't happy. given the price of natural gas produced in colorado has reached parity with the price on the new york merc, the rockies express pipeline and ruby pipeline being built, do you think that enp companies with this exposure will see a lift in profitability? is kodiak oil and gas a -- >> oh, you like a good bear play in the old kodiak. well, let me put this right in your jugular. that's not what we want at all. if you want pipeline you're going to go with kinder morgan energy partners. you're going to go with kmp. and kodiak has already had a gigantic move. now, i saw some guy downgraded apache today. i thought that was criminal. i said nothing. i do believe that chesapeake because of the way it plays on marcelus chicken veal shale and that's what we're going for. surf's up on the mobile internet tsunami. cisco's acquisition of starent is even bigger than intel's quarter. it's bigger than u.s. steel as my -- never mind. it also is in the end something that lenin got behind, and we don't need a picture of mao to
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realize this revolution is on. i want you to stick with cramer. >> announcer: coming up, one company's battle against financial crimes. cramer's finding out how keeping tabs on the big money can help you track down some mad money. and later, cramer pits two big names in retail against each other. which will emerge as the top find in fashion? find out on an all new "off the charts." plus, jim's breaking out the wall of shame. is a big change on the way to cramer's infamous list? all coming up on "mad money."
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tonight we're going back to the homeland security well as we try to capitalize on a big theme that's simply not going away.
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no matter how much we might want it to. we know that governments around the world, especially our government, are lavishing money on defense of the homeland. and we know that private industry is too. as we heard from arcsight's ceo yesterday, homeland security isn't just about protecting people and government resources anymore, it's also about protecting our country's privately owned infrastructure, including our financial system. nuclear power plants. defense installations. and all of the threats that can come from those. hacking, sabotaging, outright shutdowns. tonight i want to focus on data, video, and voice analytics. more chloe stuff from "24." and my favorite play here is -- nice systems. n-i-c-e. a not so nice israeli company. founded in 1986 by seven retired
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members of the israeli army. it's the company that makes the technology for capturing, managing, and analyzing all kinds of suspicious communications, phone calls, video, radio, and e-mail. this may not be as in your face as boots on the ground, but it's just as effective. we have a long history with nice. i originally recommended this one on march 15th of 2006 at $25.39. it's up 20%. remember, the market used to be good then. nice essentially is the first line of defense. protecting infrastructure like bridges, tunnels, power plants, oil, and gas -- and city centers from physical attacks by detecting intruders and suspicious activity. before you can catch the bad guys, you have to know who they are and what they're up to. nice gives us that capacity. and that's why its technologies are used as part of the security profile for things like the eiffel tower. for something foreign and spectacular. and for the new jersey transit, home grown, for something
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domestic and mundane. hey, when beijing -- built out the subway system for the 2008 olympics, it had nice's digital video surveillance solutions deployed across its subway system. hey, the nypd uses nice's solutions to manage emergency communications and conduct more accurate incident inquiries. and on the enterprise side, santander uses nice's technology to -- and i didn't just include that so i can say santander. there was an article in yesterday's "wall street journal" about how terrorist groups like al qaeda are in their worst financial shape in years so they're turning to more traditional criminal activity to raise money like weapons trafficking, fraud, organized crime. here's another area where nice comes in. the treasury department said these activities are accomplished by large movements of cash that could easily be detected by banks and other financial institutions and
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appeal to the private sector for helping monitoring suspicious activities, which they would do with the kind of things that nice makes. it's not all voluntary, either. at an interpol assembly yesterday, one that no doubt in an offhanded snub i was not invited to some major international law enforcement officials called for stricter anti-money laundering legislation as a means to curtail crime and prevent terrorists from raising money. again-f we get this kind of legislation, it would be huge business for nice, which is making its move in the space. and i have to ask you, especially some of the older members of the audience, where is the united network command for law enforcement on this, you might ask? i think they're too busy -- thrush because ilya kuryakin's on loan to ncis. they acquired a business that acquires smart recording systems and transactional analytic solutions to help detect fraud and money laundering threats.
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then just last month nice bought another anti-money laundering company. this is where the action is. it also gives nice access to top-tier financial clients whereas before the company specialized in mid-tier clients now the market for this kind of crime prevention technology should be worth about 3.75 billion in 2012. you look at these studies, that's where they come up with it. it's expected to grow at a 13% clip another number they come up with up from 2.6 billion in 2009. it's only 15% of nice's business. on top of this the company has plans to apply these technologies to non-financial sectors, increasing the size of its addressable market, which is what we're looking at. when you say addressable market, how much business is there altogether out there? now, what about the nuts and bolts of nice? what we recommended nice back in 2006 on. this is the basic security stuff that the company relies on for its steady performance. okay. nice is a major play on internet protocol-based video surveillance. it combines video recordings with analytics to help detect suspicious things. you've got to -- look, this is what you've been looking for, right? how about things like unattended
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bags and intruders? it nails them. the play on voice logging lets police, fire departments, and air traffic controllers handle record calls to track activities, recreate the sequence of events, keep everybody on the up and up and of course any crimes and acts of terrorism they try to predict. nice also has a communications interception business. this is traditional spy stuff like the man from uncle. this is an area where the company is relatively new but it recently won a $55 million contract to supply an unnamed government agency. i might try to guess this one on air, but then they'd -- they'd kill me. all these are businesses that i think are growing secular -- have strong secular growth trends. business, governments shell out more and more to protect themselves. that's why this whole week is about these companies that are just feeding and feeding and feeding. you need to protect your infrastructure. that's not the only reason i like them. there are other companies in the space that do similar things. i'm recommending nice because it's the best of breed. in its most recent conference call nice management said they expect a strong pipeline of
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security deals that should result in better revenue and earnings growth for the company in the second half of 2009. they report in three weeks. we'll get a chance to see if the company's delivering on that promise. solid competitive edge over virent, that's one of its main competitors. as virent's been trying to integrate its hard to swallow acquisition. 75 million in cash. that's a $30 stock trading at 17.7 times earnings. it's growing at last 17%. i don't think that's expensive for a high quooult homeland security tech name like nice. although it's with all the counterterrorism stocks, i think they make the most sense as a shopping list for when they go down because the theme is simply not going away. just like the mobile internet tsunami, as anyone who bought starent networks at our suggestion on may 8th and just picked up an 80% gain in five months, knows all too well. bottom line, data, voice, and video analytics are the first
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line of defense, both against physical attacks and financial crimes that allow terrorist organizations to fund themselves. and the best way to play the space, nice systems. after the break, we'll try to give you some more good ideas. stay with cramer! >> announcer: coming up, cramer pits two big names in retail against each other. which will emerge as the top find in fashion? find out in an all new "off the charts." lightning strikes. cramer goes electric, taking all your calls in a spine-chilling, overcharged "lightning round." and later, jim's breaking out the wall of shame. is a big change on the way to cramer's infamous list? all coming up on "mad money."
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tonight we're going off the charts to look at two different specialty retail companies -- deckers and underarmour. this is an exercise in ludicrous dressing by me but also comparative stock analysis. like we used to do at my old hedge fund and like you should be doing at home, although don't dress like this at home even. to decide between different companies in similar or similar-seeming businesses.
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deckers' strongest band is uggs, which is really a comfort brand. it's also all about style. and while its teva brand sandals are more performance focused they're nothing like the performance sports apparel that und under armour sells. here's a dilemma. both companies have very strong charts that are nearly identical. the charts, according it our go-to technician dan fitzpatr k fitzpatrick, who's also my colleague at realmoney, the paid site of thestreet.com, where i'm chairman, dan says that both companies are screaming buy. so let's first take a look at the chart of deckers. okay. after the stock printed a higher low. okay? that's the higher low. deckers shot up. all right? and then through its 200-day moving average. that's the red line. or its 40-week moving average. okay. then for about three months the stock traded between 64 and 72.
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that's this little action right in here. a little pin action. okay? and established its 200-day moving average as support. in other words, this was the ceiling. now it's a floor. because every time deckers pulled back to that level, buyers came in. okay? to soak up the supply. they actually soak up the sellers. then in late september we have another breakout on heavy volume that's been holding. remember, volume, there's the breakout. that's a big breakout. it's like a lie detector for technicians. they skip right past the fourth amendment. they do a uturn around the eighth amendment. and they go straight to the polygraph. high volume means a move is telling the truth. that's what we saw as deckers soared upwards. since then, however, volume's been declining. another positive according to fitzpatrick. when a stock is resting after its big breakout. yep, there's the big breakout. and we see declining volume like we do with deckers. that's an indication there's a lack of interest in selling. most of the people who own the stock are content to hold.
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new buyers are still taking it from those who want to take profits. we saw the same decline in volume after deckers broke through its 200-day moving average. this looks like a very bullish pattern. all right. now, let's look at under armour. amazingly, the weekly chart is practically identical. these could be twins. although not of the minnesota variety. under armour broke out above its 200-day moving average, then spent four months for deckers. it was three months consolidating at lower values. same thing, then broke out again on high volume. boom. and once again we're seeing the volume decline, indicating that most shareholders, again, are comfortable hanging on to their stock here. fitzpatrick thinks it's a photo finish or even a tie based on the charts. but when we look at the fundamenta fundamentals, there's no contest at all. the charts may be similar but as companies deckers beats under armour by a mile. just because the charts look the same doesn't mean the companies have to be similar. to evaluate these two companies,
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we want to think about demand from the third quarter going into the fourth quarter that comes from the strength of their brands. not the charts. their brands. the loyalty and performance of their key customers. and the quality of the management at each business. i think deckers is the stronger investment across the board. it also happens to be cheaper. first, deckers brands gives us a lot more confidence in under armours. deckers gets 70% of its sales from ugg wholesale. by far the most important part of the business. this is deckers' time of year. the company introduces its new styles in the fall. the consumers can't get enough of the new product, and for years -- now the company has carefully managed the distribution of ugg products within high-end specialty department stores, the retailers. in order to best reach its target customers and preserve the high-end integrity of the brand. i think there's still a lot more room for it to run.
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and both are from existing women's products and international expansion. and that deckers is a great play on the high-end retail retail. despite the fact that uggs give you no toe cleavage unlike my buddy pal friend jimmy choo. under armour's a much more mixed picture. we know they have a terrific performance apparel brand. i mean, check it out. okay? check it out. >> beautiful. >> huge. thank you. but the company's expansion into football, which started with football cleats in 2006, uh-uh, shaky ground. as the company's ceo said on the most recent conference call, footwear and apparel, they just don't leverage well. huh? ain't you people ever heard of nike? there are some things you can coordinate on the back end. but for the most part you're building a brand new business. we're really concerned about the fact -- we on "mad money" are concerned about the fact that their shoes are so heavily discounted when they hit the shelves. this is worrisome to us. that's a major, major warning sign. it was pointed out to us by none other than cnbc's own darren rovell.
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as opposed to, say, cnn's own darren rovell or fox's own darren rovell. i mean, he's our own. meanwhile, under armour's men's apparel business has started to run out of growth opportunities. the company gets 35% of its men's apparel sales, which in total comprise 53% of its revenues, from compression products. and while under armour's done a lot to broaden athletes' use of compression, it's now seeing a lot of competition from other players like nike and champion. and competition are anathema to profits. customer base? deckers is both stronger and more diverse than under armour. at deckers the five largest customers account for 30% of worldwide sales in 2008. under armour's banking on two customers -- dick's and sports authority. 31% of their net revenues in 2008. which means that under armour has much less control over its own destiny. hey, it's called football, and these big retailers can football their product. now, deckers' top customer is nordstrom's. and nordstrom's is consistently giving the impression that it's the busiest department store out there by doing what they do best, running in-store events and shows -- have you ever been
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to the shoe floor at nordstrom essence i mean, it be rocking. plus uggs have continued to gain market share at nordstrom. just ask yourself this question. who would you rather have selling your products? dick's, sports authority, or nordstrom? deckers also has more international exposure. 16% of sales compared to only 5% for under armour. and that leaves a lot of room for international growth. deckers has a stronger sales outlook than under armour too. ugg sales have been accelerating on a weekly basis. i'm told this is a great season for u6789 ggs. u.s. uggs's sales growth should be up 15% year over year. who else? no one maybe other than google. under armour on the last quarterly conference call the company said they expect revenues for the second half of 2009 to decline by 8%. under armour also said it's going to mark down some of its current products in order to enter 2010 in the strongest possible position. but that means taking a hit for the rest of 2009. i don't know anyone marking down stuff. that's the whole point. there's not a lot of sales this year. i think deckers is clearly the
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better company on all counts. only trading tone times expected earnings. under armour trades at a huge multiple of 26 times earnings. deckers is cheaper when you count for under armour's higher projected growth rate. deckers up 6%. under armour's already up 23%. you missed the under armour move. the charts of these to companies look almost exactly the same but based on the fundies deckers is a buy sxunder armour i don't want it. if you want a sports apparel company go buy nike which just recently told us how well things are going. and you'd better get your uggs now before they run out for the holiday season. why don't we go to jordan in pennsylvania? >> caller: a big lehigh university boo-yah to you. >> a monster good unbelievable play when i watched the eagles enter summer training camp boo-yah. >> caller: you have to come back and make an episode here. >> you invite me it might happen. i've got to ask regina gilman because she's the puppet master.
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go ahead. >> caller: you got it. my question's about disney. word on the street today is they're revamping their retail stores with the help of jobs, and i was wonder field goal this would lead to a nice pop in the stock price. >> no, ixnay on that. an acquaintance. you can't say friends because it's not about friends, it's about money. has done a remarkable job at disney though i think he doesn't get the respect he deserves including the amazing investment in espn. but the stores do not do what we call move the needle. they are not as big as any big movie franchise. why don't we go clear across the country, why don't we go to charleen in cal, charleen? >> caller: hi, jim, boo-yah from palm springs springs, the heart of the beautiful coachella valley. >> you're absolutely right. i was out there in indio less than a year ago. it is just dynamite there. >> caller: it sure is. tell me, jim, my stock is true religion, you know, the $300 jeans all the girls are wearing. >> yeah. >> caller: and i'm wondering in this kind of economy what's your long-term outlook? >> first of all, i did buy my daughters each a $150 gift
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sfiblth at true religion, which then my eldest reminded me meant they could get one leg. the problem with true religion is a short, which is where a lot of people at hedge funds were, they don't understand the international appeal of true religion. this is a company that literally has customers, even in this challenged time, that rin sensitive to the price. there is a true religion located next to thestreet.com where i'm chairman on wall. and the place is happening. i can't tell you what a great franchise they have. it is up there as i aplace people are willing to overpay for jeans. i don't get it, near a 52-week high, not going lower. all right. the charts may be the same, but we're all about styling and the fundamentals. and we like deckers over under armour. so grab yourself some uggs, put this outfit on for halloween, and stick with cramer. >> announcer: coming up, are you ready to get charged up? cramer cranks up the voltage and goes electric on an all new hyperactive "lightning round." and later -- jim's breaking out
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the wall of shame. is a big change on the way to cramer's infamous list? all coming up on "mad money."
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all right. before we get to the "lightning round," i want to tell you, in case you didn't preorder it or weren't standing in line today to buy it at the bookstore, that my new book "getting back to even" came out today. i'm going to be signing books at a couple of local places this week. and would love to see you there. hey, listen, i will. i will personallize it. today i'll be at the bearance & noble on route 17 in paramus, new jersey 7:30. tomorrow come see me at the borders in bridgewater, new jersey. both beautiful stores. that's my bookstore. don't forget, you can log on to madmoney.cnbc.com. madmoney.cnbc.com if you want to find me, track me down, and get me to sign your book. now. now it is time for the "lightning round" on cramer's "mad money." and what would that snb
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rapid-fire calls where you tell me the name of the stock and i tell you whether to sell sell or -- play until this you hear this sound. 5-4 philly. and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." let's go to pete right now in pennsylvania. pete. >> caller: jim, how are you doing? >> not bad, thank you for asking, mr. philadelphia, since i detect the accident. i think you're probably from tennison reed. go ahead. >> caller: yes. boo-yah from the fighting phils. >> you bet. >> caller: my symbol is sem, select medical. i checked -- >> okay. select med, we recommended it as part of a package with another one, which would turn out to be the a-one steak sauce. a one was good, select did nothing. loss or broke own on select med, which is a horrible play, did not work, and you made lots of
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hay on a-1 steak sauce and we felt good. that's actually a little play on the fact that it was a company called a-1. let's go to john. oh, we'll be head there'd soon. in oklahoma. john. >> caller: boo-yah, jim cramer. >> i hope to see you at the university of oklahoma on october 30th, where we will be there doing our show. how can i help? >> caller: man, i tell you what, jim. i want to thank you for all you do for all us home gamers. >> you're quite welcome. >> caller: the stock is pbct, people's united financial -- >> that stock is warming up. i know people want it to explode. here's why i like it. because they have enough capital. we buy all the banks that i think sheila bayer is going to -- i predict there will be another 800, 900 banks that go under. i like it so much i put it in my new book, came out today, "getting back to even." it's one of my great bank plays. jared in utah. >> caller: hello, jim, thanks for taking my call. want to throw out a nascar boo-yah to you. >> man, we love nascar. we've been to nascar.
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we know nascar. what's up? >> caller: thinking about expanding my position in united parcel service, ups. >> well, you've got horse sense. every bit as good a company. i think they do a fantastic job. what do i want to do with ups? >> buy buy buy! >> right here right now. now to mike in virginia. mike! >> caller: boo-yah. jim, i wanted to find out about brookdale senior living, bkd, and the senate passage of the obama care. >> i've got to tell you, brookdale senior living is all the way back to its 52-week high, and it is time to ring the register and get out of brookdale senior. one of the reasons i want to be out of it is that 44% of it is owned by fortress investment group and i don't want to get anywhere near that stock. >> sell sell sell. >> let's go right now to dave in new york. dave. >> caller: jim, let me give you
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an upstate new york boo-yah! >> that's amazing. i'll give you an adirondack 46-er boo-yah right back at you. what have you got? >> caller: since march we're up 65%. thank you much. we couldn't do it without you. >> you know what? thank you. because you believed in yourself. because you understood that the people that try to keep you in chains by passive investing, tell you to forget about your money, they'll never make you what you made. those guys will never make you as much as you'll make watching a movie. >> caller: i know you like gilead, but i wonder if it's time to look at celgene. >> i like celgene too. i own gilead for actionalertsplus.com, my charitable trurt, but celgene's every bit as good. the president's a friend of the show and we like him very much and he's made money consistently. we're going right now to donna in texas. donna. >> caller: hi, jim. i preordered your book. barnes & noble says it's been
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shipped, and i'm waiting for the doorbell to ring. >> you just made my year if not simon & schuster's year. how can i help you? >> caller: i'm trying to get even. i've been in the basement with st. joe. joe. they own all that timber on that land. and i'm thinking that's worth a lot of money. but should i continue to hold -- >> actually, i visited their property many times. i think at this point it's too late to sell. i'd rather have you own the stock which is the largest independently owned and operated in florida. i want you to stick with it, go get your book signed in paramus tonight or tomorrow in bridgewater, and i want you to stick with cramer!
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jeffrey peak, who i think is the horrible ceo of cit group, one of the worst lending institutions in the country, and an exemplary member of the "mad money" wall of shame, has finally done something good for his company. he's he tendered his resignation effective the end of this year, although there's quite a bit of time between now and the end of the year. yes, jeffrey peek is taking a real vacation. to be rivaled by the permanent intellectual vacation he's been on for the better part of the last 18 months. this is a case of better late than never because i don't think cit has a prayer of survive option its own, but peek is
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getting what he deserves. he's been an amazing destroyer of shareholder value, stock offering after stock offering trying to prop up his company, huge money losers for anyone who came near this thing. right now it's trading less than a dollar. who knows where it will end up at year's end? when this guy took over on july 21st, 2004, cit was trading at $37. i can't make a case for why it should go higher but i do think you shouldn't let the stock performance misheed you into believing that peek's departure is anything other than good news. we're also taking down strauss ze zellnick. take 2 interactive. he's paid his dues. it takes two to pay the right price. electronic arts in that respect should have bought take 2 as it would have helped the once-all powerful game maker to get "grand theft auto" to replace its aging franchises.
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okay. now we got a big hole to fill. big shoes! colossal cordo vans! and to find someone to file them, it wasn't easy, believe me, i had to do some serious nood lg, and we need to go back to the wall of shame. well, not only -- someone in the fashion of the great evelyn champagne king, shame, we have to go to a wall of shame recidivist. that's right. we're going back tonight to wes eaton's chairman of the fortress group of fortress. i originally pud edens on the wall in february of 2008 when fortress was trading as a hedge fund mas quaiding as company. be more polite. it's a company. trading at $14.42 the last time the man was with his midas touch. a catastrophe of a company.
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now on december 4th of last year when fortress was trading at $1.89, i took edens off the wall of shame because of the mercy killing rule. i just figured there wasn't much point in keeping his face up there when his stock was already at less than two bucks a share. i was wrong. from now on, it's with malice toward all and charity for none, just like honest abe. oh, and i obviously will never be invited to a legendary wes edens westhampton's bash after this, but so what, pal! the summer's over! tonight i'm putting wes edens back on the wall for the hosing of the public on the rail america ipo which came to $15 today but never traded anywhere near that. this was continue criminaled excellently from the floor today. this overpriced short-haul rail line company i think was a total disaster partly because of the deal structure whereas bob told us, fortress is cashing out,
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taking half the money from the ipo for itself, not cashing in and because nobody wants a crummy ipo with a glut of new companies coming flick. edens could kill the whole ipo market with this. thanks for spoiling it for everyone, edens. not that we shouldn't have known it, because when fortress did it own secondary, you were hammered immediately for buying that piece of nasty merchandise. $2.72 on july 8th. wes edens, congratulations on becoming the first man to be a two-time member of the "mad money" wall of shame. rail america? no. how about riding out of town on a rail. wes, so you can't hurt any more unsuspecting investors. may the second time be a real charm. 
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intel the magnificent has spoken and that stock is still going higher. we like siena and peckaelectric. i hope to see you tonight. i will see you tomorrow! next up on "kudlow," the public case of government takeover of health care, dough 10000 is a footrace between
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he's a hall of fame quarterback who scored a 22-pound weight loss thanks to nutrisystem. he's a legendary linebacker who's tackled his own weight problem by dropping 35 pounds with nutrisystem. so, who's the winner... at losing weight? listen here, twinkle toes, you're going to need some new dance moves, buddy, if you're going to take on dan marino. dan marino?

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